TaxTMI 
TaxTMI 
2013 (8) TMI 737
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....the assessee claimed exemption u/s 54F of the Act in respect of investment made for construction of a residential house. According to the ld.counsel, the assessee has purchased 196.144 cents of land on 15-06-2007 for a consideration of Rs.3,79,95,000 and constructed a house admeasuring 254.94 square metres. Though the assessing officer disallowed the entire claim of the assessee, the CIT(A) found that only 5 cents of land could be treated as standard measure of a house. Accordingly he disallowed the proportionate cost of land. According to the ld.representative, the area required for construction of a house would depend upon the social status of the individual. Therefore, the land appurtenant to the residential house has to be determined with respect to the social status of the assessee. The ld.counsel placed his reliance on the judgment of the Andhra Pradesh High Court in CIT vs Zaibunnisa Begum (1985) 151 ITR 320 (AP) and submitted that the expression 'land appurtenant' means the extent of land which is required for proper and convenient enjoyment of the residential house. Therefore, according to the ld.representative, the CIT(A) is not correct in restricting the area of land to ....
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....gard to the area of the land which is required for convenient enjoyment of 254.94 sq.mts of residential house. The area of the land which is required for convenient enjoyment of the house has to be determined with regard to the social status and profession, etc of the individual assessee, profession, etc. An agriculturist may require a reasonable extent of land for housing their cattle, agricultural implements, etc. An industrialist may require car sheds to park his cars, servant quarters. etc. Moreover, the locality where the land also needs to be considered. In villages, one may have vast extent of land for garden, play ground, etc. However, such things may not be possible in urban cities. Therefore, the land appurtenant to the residential house has to be determined with regard to the locality where the residential house is situated, the social status of the individual assessee, profession of the individual and other factors for proper and convenient enjoyment of the residential house. This Tribunal is of the considered opinion that 5 cents of land determined by the CIT(A) is very less in the State of Kerala. The State of Kerala mainly being an agricultural area, this Tribunal is....
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.... ld.DR submitted that the assessee was expected to deposit the amount within the due date provided for filing of the return of income u/s 139(1) of the Act. According to the ld.DR, the due date for filing the return of income u/s 139(1) was 31-07-2007. Therefore, the deposit of funds to the extent of Rs.40 lakhs in capital gain deposit scheme is beyond the time specified in section 54F(4) of the Act. 10. On the contrary, Shri Mohan Pulickal, the ld.counsel for the assessee submitted that section 139(4) gives extended time for filing the return of income. Therefore, the deposit made before the due date for filing the return of income u/s 139(4) has to be considered for the purpose of deduction 54F of the Act. The ld.counsel placed his reliance on the judgment of the Punjab & Haryana High Court in CIT vs Jagriti Aggarwal (2011) 339 ITR 610 (P&H). The ld.counsel has also placed reliance on the judgment of the Gauhati High Court in the case of CIT vs Rajesh Kumar Jalan (2006) 286 ITR 274 (Gau). 11. We have considered the rival submissions on either side and also perused the material available on record. We have also gone through the provisions of section 54F(4) of the Act. For claimi....
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....struction. It is common knowledge that electricity supply would be provided only after completion of the construction. Before completion, no regular power supply will be provided by the electricity board. This Tribunal is of the considered opinion that when the local panchayat has issued the completion certificate under the Local Bodies Act, the same has to be accepted unless and until the revenue has material to show that the building was not otherwise completed. This Tribunal is of the considered opinion that the authority is empowered to permit the assessee to construct the building under Local Bodies' Act is competent to and issue completion certificate. In the absence of any material to indicate that the house was not completed, this Tribunal is of the considered opinion that the completion certificate issued by the local panchayat has to be accepted. Therefore, we do not find any infirmity in the order of the lower authority with regard to the date of completion of the building. 13. In the result, ITA No.154/Coch/2012 is allowed for statistical purpose and appeal of the assessee in ITAT No.166/Coch/2012 is partly allowed for statistical purpose. 14. Now coming to the appeal....
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....herefore, the lower authorities had no occasion to examine the same. Merely because the assessee's brother has not made any claim u/s 54B that cannot be a reason for disallowing the claim of the assessee. When the assesee has produced certain material before this Tribunal and claimed that the land was subjected to cultivation, this Tribunal is of the considered opinion that the assessing officer has to examine the documents independently and record finding whether the land in question is subjected to cultivation or not? Therefore, the omission of the assessee's brother to claim deduction u/s 54B cannot be a reason to disallow the claim of the assessee. Accordingly, the order of the lower authorities are set aide and the issue is remitted back to the file of the assessing officer. The assessing officer shall reconsider the issue in the light of additional evidence filed by the assessee before this Tribunal and thereafter decide the same in accordance with law after giving reasonable opportunity to the assessee. 18. The next ground of appeal is with regard to investment in construction of the house. 19. Shri Jose Kappan, the ld.representative for the assessee submitted that the ass....